An investigation on behalf of investors of Energy Recovery, Inc. (NASDAQ:ERII) shares over potential securities laws violations by Energy Recovery, Inc. and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Energy Recovery, Inc. (NASDAQ:ERII) concerning whether a series of statements by Energy Recovery, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

San leandro, CA based Energy Recovery, Inc. is an energy solutions provider to industrial fluid flow markets. The Company's solutions convert wasted pressure energy into a reusable asset and preserve or eliminate pumping technology in hostile processing environments. Energy Recovery, Inc. reported that its annual Total Revenue rose from $44.71 million in 2015 to $54.72 million in 2016 and that its Net Loss of $11.64 million in 2015 turned into a Net Income of $1.03 million in 2016.

On December 18, 2017, Energy Recovery, Inc. (NASDAQ:ERII) announced that the Company will not conclude milestone testing of its VorTeq hydraulic fracking technology by the end of 2017. Energy Recovery, Inc. (NASDAQ:ERII) stated that a physical examination of the VorTeq system indicated that certain of its components were suboptimal.

Shares of Energy Recovery, Inc. (NASDAQ:ERII) declined to as low as $8.73 per share on December 29, 2017.